Financial Well-Being, Credit Scores & A Good Credit Life
What is Experian i-SCORE?
Experian i-SCORE is a consumer credit score. A credit score is a three-digit number that reflects the likelihood of you paying credit back. Lenders like banks and credit card companies will look at your credit history when they calculate your credit score, which will show them the level of risk in lending to you. The higher your credit score, the better your chances of being accepted for credit, at the best rates.
Experian i-SCORE ranges between 300 to 800 and is calculated by a mathematical formula using the information in your credit report, which is generally updated each month. The higher your score, the more credit worthy you are.
These scores are also banded into Risk Grades from 1 to 10 and the higher your Risk Grade, the better your credit worthiness standing.
How do lenders use the Experian i-SCORE?
- Experian i-SCOREs are used by lenders to gauge the creditworthiness of you as a potential borrower
- Your credit score allows lenders to assess your credit history and current credit status
- It allows lenders to determine your debt-to-income ratio
- Your credit score helps lenders assess the risk of lending to you
- It helps lenders determine the likelihood that you will repay a debt as agreed
How is the Experian i-SCORE calculated?
What are the advantages of having a good Experian i-SCORE?
Nearly every part of your financial life is impacted by the strength of your credit score. Most notably, here are some advantages of building and maintaining a good credit score:
- You will have better access to credit and financial products
- Your credit approval may be improved or fast tracked when you apply for new credit
- You may enjoy better interest rates on credit products
- You will have a good credit reputation where credit offers may be presented to you, e.g. refinancing of your home when interest rates are better
- You will be prepared for a future which requires credit like applying for a mortgage or a hire purchase on a car
How can you improve your Experian i-SCORE?
Your credit score changes when new information is reported by your creditors. Therefore, your Experian i-SCORE will improve over time when you manage credit responsibly. Here are some general ways to improve your credit score:
- Pay your bills on time
- Pay off debt and keep balances low on credit cards and other revolving credit
- Apply for and open new credit accounts only when needed
- Don't apply for too much new credit, resulting in multiple inquiries
- Report any inaccuracies on your credit reports
- Monitor your personal credit report and Experian i-SCORE regularly